Revenue during the quarter dropped 4.26 percent to $5,355 million from $5,593 million in the previous year period. Gross margin for the quarter contracted 27 basis points over the previous year period to 26.95 percent. Total expenses were 94.44 percent of quarterly revenues, up from 94.31 percent for the same period last year. That has resulted in a contraction of 12 basis points in operating margin to 5.56 percent.

Operating income for the quarter was $298 million, compared with $318 million in the previous year period.

However, the adjusted operating income for the quarter stood at $355 million compared to $358 million in the prior year period. At the same time, adjusted operating margin improved 23 basis points in the quarter to 6.63 percent from 6.40 percent in the last year period.

“During the third quarter we pivoted from planning to execution of the Staples 20/20 strategic plan while delivering results that were right in-line with our expectations,” said Shira Goodman, Staples’ Chief Executive Officer. “Staples 20/20 is a transformational change of our strategy, our mindset, and our operating model to reshape our company for sustainable long-term growth.”

On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.23 to $0.26 for the fourth-quarter.

The company has spent $141 million cash to meet investing activities during the nine month period as against cash outgo of $227 million in the last year period.

The company has spent $244 million cash to carry out financing activities during the nine month period as against cash outgo of $310 million in the last year period.

Cash and cash equivalents stood at $1,076 million as on Oct. 29, 2016, up 37.60 percent or $294 million from $782 million on Oct. 31, 2015.

Working capital remains almost stable
Staples, Inc has witnessed a decline in the working capital over the last year. It stood at $2,093 million as at Oct. 29, 2016, down 0.99 percent or $21 million from $2,114 million on Oct. 31, 2015. Current ratio was at 1.65 as on Oct. 29, 2016, up from 1.64 on Oct. 31, 2015.

Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 35 days for the last year period. Days sales outstanding were almost stable at 32 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 23 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding went up to 48 days for the quarter from 46 for the same period last year.